Parks USA pays deposit to enter Lankan petroleum market
The third interactional petroleum player to enter the Sri Lankan market, RM Parks of the USA, has deposited their initial payment with the government disclosed Minister of Power and Energy Kanchana Wijesekera.
Speaking to Daily News Business he said that RM Parks will start operations in Sri Lanka from next month.
The US based company will initially take over 150 fuel stations and will operate them. Prior to the economic crisis, the Sri Lankan Petroleum sector held the monopoly in the sector and two decades ago the government also allowed Indian Oil Company (LIOC) to operate in Sri Lanka also allowing them to operate oil tanks in Trincomalee.
With the economic crisis which was further fueled by long fuel ques due to the government not having finances to fund for fuel imports the government decided to allow more foreign companies to enter the local market.
With this Chinese petroleum giant Sinopec also entered the Sri Lanka market and already commenced operations last month. Sinopec signed the contract on May 22, 2023.
He said that both the RM Parks of the USA and Sinopec also have the authorization to build new petrol sheds on their own and operate in Sri Lanka.
RM Parks has supplied a variety of fuel brands to stations in California for almost 50 years. In addition to this Australian United Petroleum company too would start operations in Sri Lanka.
“The entering of these three players will drastically reduce the government burden of importing fuel thus saving huge forex each month and address the foreign exchange crisis in Sri Lanka ensuring a steady supply of fuel as well.”
Sri Lankan authorities have opened the retail fuel market to more foreign companies in an effort to solve the energy crisis as the country’s depleted foreign reserves hinder imports of oil.
The foreign companies are required to use their own funds to purchase fuel, without depending on Sri Lankan banks for foreign exchange.
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